BILL REQ. #:  H-0521.2 

Read first time 02/07/2003.   Referred to Committee on Finance.

     AN ACT Relating to authorizing additional funding for local governments; reenacting and amending RCW 84.52.010; adding a new section to chapter 82.14 RCW; adding new sections to chapter 84.52 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that local governments in the state of Washington face enormous challenges in the areas of criminal justice and public health. It is the legislature's intent to allow local governments to raise revenues in order to better protect the health and safety of Washington state and its residents.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.14 RCW to read as follows:
     (1) A county legislative authority in a county with a population of less than one million may submit an authorizing proposition to the county voters and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The rate of tax under this subsection shall not exceed three-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
     (2) The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county.
     (3) Money received under this section shall be shared between the county and the cities as follows: Sixty percent shall be retained by the county, and forty percent shall be distributed on a per capita basis to cities in the county.

NEW SECTION.  Sec. 3   A new section is added to chapter 84.52 RCW to read as follows:
     (1) The legislative authority of any county may submit an authorizing proposition to the voters at a general or special election and, if the proposition is approved by the majority of qualified voters voting on the proposition, impose an additional permanent regular property tax levy in an amount not to exceed thirty cents per thousand dollars of assessed valuation.
     (2) If a proposition approved under subsection (1) of this section did not impose the maximum levy amount authorized in this section, any future increase up to the maximum allowable levy amount must be specifically authorized by the voters in accordance with subsection (1) of this section.
     (3) The additional regular property tax levy authorized in this section is in addition to the levy authorized in RCW 84.52.043(1).

NEW SECTION.  Sec. 4   A new section is added to chapter 84.52 RCW to read as follows:
     (1) The legislative authority of any city or town may submit an authorizing proposition to the voters at a general or special election and, if the proposition is approved by the majority of qualified voters voting on the proposition, impose an additional permanent regular property tax levy in an amount not to exceed thirty cents per thousand dollars of assessed valuation.
     (2) If a proposition approved under subsection (1) of this section did not impose the maximum levy amount authorized in this section, any future increase up to the maximum allowable levy amount must be specifically authorized by the voters in accordance with subsection (1) of this section.
     (3) The additional regular property tax levy authorized in this section is in addition to the levy authorized in RCW 84.52.043(1).

Sec. 5   RCW 84.52.010 and 2002 c 248 s 15 and 2002 c 88 s 7 are each reenacted and amended to read as follows:
     Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.
     The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.
     When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:
     (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows: (a) The portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.
     (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:
     (a) First, the certified property tax levy rates from the additional county, city, and town property taxes authorized under sections 3 and 4 of this act shall be reduced on a pro rata basis or eliminated;
     ((First)) (b) Second, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100, and 67.38.130 shall be reduced on a pro rata basis or eliminated;
     (((b) Second)) (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;
     (((c) Third)) (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;
     (((d) Fourth)) (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts created on or after January 1, 2002, shall be reduced on a pro rata basis or eliminated;
     (((e) Fifth)) (f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and
     (((f) Sixth)) (g) Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.
     In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.